If you live near the water, chances are you’ve spent some time on a fishing boat, sailboat, or personal watercraft.  But when it comes time to buy your own, you’ll want to look into your options for boat insurance.  Some people rely on their existing homeowner’s insurance policy to cover damages to their vessel, but often these policies only cover up to $1000 of damages and then only while the boat is at your house. They don’t cover damage to someone else’s property in the case of an accident, and pay nothing for medical bills when someone gets hurt.

If you don’t have boat insurance, you could be sued for damages, turning your quest for fun into a nightmare.  Even though boat insurance is required only for sailboats and not powerboats or personal watercraft, it’s still smart to get coverage before launching that vessel into the water.

Boat insurance typically covers property damage and liability, usually in $100,000 increments, similar to car insurance.  This will protect you against a lawsuit if there’s an accident.  But if you have expensive fishing tackle or personal property like a cell phone or laptop that you use onboard, you may want to look at adding a rider to your policy to make sure those things are covered, too.

Other options include uninsured boat coverage, which works like uninsured motorist coverage on your car insurance policy; towing, which covers your tow to shore in the event of a breakdown; and medical payments, which covers anyone who’s injured while on your boat – even when there’s no actual collision.  Adding coverage for these situations makes good long-term sense, but be careful: they can drive your premiums skyward.

To keep premiums down, choose the highest deductible that you can afford to pay if disaster should strike.  It’s also a good idea to take a boating skills and water safety course.  They are available for free from the U.S. Coast Guard Auxiliary and the U.S. Power Squadrons and can reduce your premiums up to 20%.  Many insurers also offer discounts for newer boats, boats with protective gear, and boats that pass inspection by the U.S. Coast Guard Auxiliary. The inspection is also a free service and just a good idea – especially if your boat is more than a few years old.  Your level of boating experience is also a factor in how much you will pay, so the good news is, your premiums should go down with time.

Photo via Phillip Pessar